On Thursday, Coinbase (COIN) shares soared more than 20%, following the Federal Reserve’s recent rate hike and Fed Jerome Powell’s declaration of progress in fighting inflation.
On Wednesday, Coinbase was granted a dismissal of the proposed class-action lawsuit by customers who accused them of selling unregistered securities. This resulted in their stock price surging more than 100% this year as the crypto industry is gradually regaining its strength following the FTX exchange’s collapse.
Given that most of Coinbase’s income comes from trading volume, it is closely linked with Bitcoin’s (BTC) dramatic rally this year.
Barclays’ recent report revealed that Coinbase volumes rose impressively by 56% from the previous month in January. Although this is close to the activity seen before FTX’s collapse last October, it still falls short of the averages for 2022. Not surprisingly, various stocks related to crypto have also been flourishing alongside broader equity markets; business software giant MicroStrategy saw a 10% increase due to its large Bitcoin holdings, while Silvergate Capital shares skyrocketed more than 30%.
Edward Moya, a senior Oanda foreign exchange market analyst, is optimistic about crypto’s future. He commented: “January was an excellent month for digital currency, and the [Federal Open Market Committee rate] decision has given all risky assets a boost.”
Simultaneously, crypto miners significantly impacted by the cost of Bitcoin have also been excelling. Equities for Marathon Digital (MARA), Riot Platforms (RIOT), Hive Blockchain (HIVE), CleanSpark (CLSK), and Hut 8 (HUT) were up more than 10%, with Peer Cipher Mining’s stock soaring more than 20% high after reaching its all-time maximal computing power in January.
The largest cryptocurrency, Bitcoin, is experiencing an explosion of growth as it hit a new all-time high of $23,830 on Thursday. Ether (ETH), the native token from the Ethereum blockchain, followed suit with a 2% increase to trade at $1,675 by press time.
Moya commented that although Bitcoin is currently riding this wave of risk sentiment from Wall Street investors and analysts alike, it might struggle to break above its massive resistance level near $25K. In addition to these remarkable feats in the crypto market, the Nasdaq index surged 3%, while S&P 500 rose 1.3%.
